Section 80 Deductions

Income Tax Deductions under Chapter VI-A of the Income Tax Act allow individuals and businesses to reduce their taxable income, resulting in lower tax liability. Various deductions are available under sections 80C to 80U, which can be claimed while calculating taxable income.

For example, for an individual with a yearly salary of ₹20 lakh:

Tax Saving Calculation for Yearly Income – ₹20,00,000

Gross Salary: ₹20,00,000
Less: HRA ₹2,00,000, LTA ₹40,000, Reimbursements ₹24,500, Children Education & Hostel Allowance ₹9,600, Standard Deduction ₹50,000, Professional Tax ₹2,400

Taxable Salary Income

Deductions: 80C ₹1,50,000, 80D ₹50,000, 80E ₹22,000

Net Taxable Income: ₹14,51,500
Tax on Income: ₹2,57,868
Rebate u/s 87A: Not applicable
Total Tax: ₹2,57,868

Additional deductions (if eligible) include:
Interest on home loan EMIs under Section 24b – ₹2,00,000
Principal repayment of home loan under Section 80EEA – ₹1,50,000
NPS investments u/s 80CCD(1B) – ₹50,000

Note: Most deductions under sections 80C to 80U are available only under the old tax regime, except for 80CCD(2), 80CCH(2), and 80JJA.

Section 80C – Investments in LIC, PPF, Sukanya Samriddhi Account, Mutual Funds, FD, child tuition fees, ULIPs, etc., eligible for deduction up to ₹1,50,000.

Section 80CCC – Contributions to pension funds.

Section 80CCD(1) – Contributions to Atal Pension Yojana or National Pension Scheme (NPS), up to ₹1,50,000 under overall 80C limit.

Section 80CCD(1B) – Additional deduction of ₹50,000 for NPS contributions, over and above 80C limit.

Section 80CCD(2) – Employer contributions to NPS, up to 14% of salary + DA for government employees, or 10% for others.

Section 80D – Health insurance premiums, preventive health check-ups, and medical expenses:

• Self, spouse, and children below 60: up to ₹25,000
• Parents below 60: ₹25,000; above 60: ₹50,000
• Maximum deduction for individuals: ₹1,00,000 including preventive check-ups

Section 80DD – Medical treatment of dependent with disability: ₹75,000 for normal disability (40%-79%), ₹1,25,000 for severe disability (80%+).

Section 80DDB – Treatment for specified diseases: ₹1,00,000 for senior citizens, ₹40,000 for others.

Section 80E – Interest on education loan for self, spouse, or child. No maximum limit, available for 8 assessment years.

Section 80EE / 80EEA / 80EEB – Interest on home loans or loans for electric vehicles:

• 80EE: up to ₹50,000
• 80EEA: up to ₹1,50,000 for first-time home buyers
• 80EEB: up to ₹1,50,000 for EV loans

Section 80G – Donations to specified charitable institutions. Deduction varies based on institution type (50% or 100%) and cash donations capped at ₹2,000.

Section 80GG – House rent paid (if HRA not received), deduction up to ₹5,000 per month or 25% of adjusted total income, whichever is lower.

Section 80GGA – Donations for scientific research or rural development. Full deduction allowed; cash donations above ₹2,000 not eligible.

Section 80GGB / 80GGC – Contributions to political parties. Deduction available for non-cash contributions; 100% of contribution deductible.

Section 80RRB – Royalty on patents: deduction up to ₹3,00,000 or actual income, whichever is lower.

Section 80QQB – Royalty income of authors: deduction up to ₹3,00,000 or as per income.

Section 80U – Disabled individuals: ₹75,000 for normal disability, ₹1,25,000 for severe disability.

Section 80TTA / 80TTB – Interest on savings accounts:

• 80TTA (individual/HUF under 60): up to ₹10,000
• 80TTB (senior citizens 60+): up to ₹50,000

Most deductions like 80C, 80D, HRA, LTA, and home loan interest are available only under the old tax regime. Only a few, such as 80CCD(2) and 80JJAA, are allowed under the new regime. Standard deduction is available in both, with limits varying by year.

Investments eligible for deduction under 80C include ELSS, NPS, ULIP, PPF, Sukanya Samriddhi Yojana, NSC, fixed deposits, EPF, and Senior Citizen Savings Scheme. These options are available if you choose the old tax regime.